In: Operations Management
Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,000 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 9% of the items in inventory are A items, 33% are B items, and 58% are C items. She would like to set up a system in which all A items are counted monthly (every 21 working days), all B items are counted quarterly (every 60 working days), and all C items are counted semiannually (every 117 working days).
How many items need to be counted each day _______ items (round your The total number of items that need to be counted each day is response to the nearest whole number).
Solution:
Total inventory = 7,000 items
Number of A items = 9% of inventory = 0.09 x 7,000
Number of A items = 630
Number of B items = 33% of inventory = 0.33 x 7,000
Number of B items = 2,310
Number of C items = 58% of inventory = 0.58 x 7,000
Number of C items = 4,060
Number of A, B and C items counted each day is calculated as,
Number of an item counted each day = Number of an item / Duration between counting
Number of A items counted each day = 630 / 21 = 30
Number of B items counted each day = 2,310 / 60 = 38.5
Number of C items counted each day = 4,060 / 117 = 34.70
Total number of items counted each day = 30 + 38.5 + 34.70
Total number of items counted each day = 103.20 or 103 (Rounding off to the nearest whole number)
Total number of items counted each day = 103 items